While it was already underway prior to the pandemic, the global shift to digital payments has been positively affected by the crisis. According to the research data analyzed and published by the Finnish website Sijoitusrahastot, it is among the fintech verticals reporting the highest growth in 2020. The report reveals that during the first half of the year, digital payments grew by 21 percent y/y in terms of transaction volume.
Other verticals showing remarkable growth included digital custody (36 percent), digital asset exchange (33 percent), digital savings (26 percent), and WealthTech (24 percent).
According to Statista, the total transaction value in digital payments is projected to grow at 23.7 percent in 2020 to reach $4.93 trillion. The number of digital payment users is forecast to increase by 10.1 percent y/y to reach 3.47 billion in 2020.
In the period between 2020 and 2024, it is set to grow at a 13.4 percent compound annual growth rate (CAGR) to reach $8.17 trillion by 2024.
China is expected to take the lead globally in digital payments overall as well as in digital commerce. In the former, the country is set to generate $2.31 trillion in 2020 while in the latter it is projected to rake in $1.17 trillion.
(WBJ)